Measurement of flexibility and its benchmarking using data envelopment analysis in supply chains

Abstract

Supply Chain Flexibility is becoming a key strategic issue for Supply Chain (SC) performance. Performance Measurement Systems (PMS) for Flexibility is critical for its monitoring, control and improvement. A comparative analysis of some widely cited PMS for SC flexibility have been undertaken and it indicates that the flexibility measurement methodology proposed by Beamon, International Journal of Operations & Production Management, 19(3), 275-292, 1999 is a suitable framework for SC Flexibility measurement. However there are limitations in this framework when they are used for benchmarking similar SC. Data Envelopment Analysis (DEA) helps in finding relative efficiencies of similar SCs, bench marking and evaluate areas of possible improvements. This paper demonstrates use of DEA with SC Flexibility measurement to facilitate effective measurement and benchmarking of SC flexibility.